AUD/USD hits fresh session lows, around mid-0.7600s
• Post-RBA rejection slide extends through the European session.
• A renewed uptick in US bond yields adding to the selling pressure.
The AUD/USD pair extended post-RBA rejection slide from the 0.7700 handle and has now dropped to fresh session lows, near mid-0.7600s.
Earlier during the Asian session, the pair failed to move back above the very important 200-day SMA and turned lower as bulls seemed disappointed from RBA decision to maintain status quo.
Meanwhile, growing expectations for an upcoming Fed rate hike action in December lifted the US Treasury bond yields higher and prompted additional flows out of higher-yielding currencies - like the Aussie.
Adding to this, a sharp pull-back in commodity prices, especially copper, accompanied with resurgent US Dollar demand further aggravated the selling pressure around the major.
With today's slide, the pair eroded majority of previous session's recovery gains and has now moved back within striking distance of 0.7640 strong horizontal support, which if broken would turn the pair vulnerable to resume with its prior depreciating move.
Technical levels to watch
Weakness below the above-mentioned support is likely to accelerate the fall towards the 0.7600 handle en-route its next major support near the 0.7580-75 region.
On the upside, any meaningful up-move might continue to confront fresh supply near the 0.7690-0.7700 region, which if cleared might trigger a short-covering bounce towards mid-0.7700s.